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Money Management

AllianceBernstein’s AUM up 2% in quarter, rises 2.9% for year

AllianceBernstein (AB) reported assets under management of $550.4 billion as of Sept. 30, up 2% from three months earlier and up 2.9% from a year earlier, said its earnings statement released Wednesday.

Net inflows across the firm's investment businesses totaled $1.3 billion in the third quarter vs. net outflows of $7.7 billion in the second quarter and net inflows of $4.5 billion for the third quarter of 2017.

Net outflows from institutional investors were $200 million in the quarter ended Sept. 30 compared to net outflows of $8 billion in the quarter ended June 30 and net inflows of $1.4 billion for the quarter ended Sept. 30, 2017.

AllianceBernstein's AUM growth was driven by strong net inflows to active equity strategies during the current quarter, said Seth P. Bernstein, CEO and president, during an earnings call with analysts Wednesday.

Mr. Bernstein stressed that gross sales of active equity strategies in the firm's institutional business totaled $6 billion year-to-date Sept. 30.

By asset class, Alliance Bernstein's actively managed equities experienced net inflows of $2.9 billion, followed by tax-exempt fixed income with net inflows of $400 million in the third quarter.

The rest of the firm's asset classes experienced net outflows during the three-month period ended Sept. 30: passive equity, $1.2 billion; taxable fixed income, $500 million; other, including multiasset class strategies and alternatives, $200 million; and passive fixed income, $100 million.

Investment consultants have been a key factor in AB's growth across multiple strategies this year, Mr. Bernstein told analysts, noting that 70% of client investments so far this year have come through 13 consulting firms.

AllianceBernstein's net revenue for the third quarter was $850.2 million, up 0.6% compared to the prior quarter and up 4.7% from the year-earlier quarter.

Net income was $213 million in the quarter, up 12.9% from the second quarter and up 32% from the third quarter of 2017.